Vietnam Biotech Market Outlook to 2028

Vietnam Biotech Market Overview

• The Vietnam biotech market has witnessed substantial growth, which is reflected by Vietnam Biotech market reaching a valuation of USD 1.5 billion in 2023. This growth is primarily driven by the increasing demand for advanced healthcare solutions, agricultural biotechnology, and bio-manufacturing capabilities. The country's strategic focus on innovation, coupled with rising investments from both domestic and international players, has further accelerated market expansion.

• Key players driving the Vietnam biotech market include Vinbiocare, Nanogen Pharmaceutical Biotechnology JSC, and Mekophar Chemical Pharmaceutical Joint Stock Company. These companies are at the forefront of the market, leading innovations in vaccine production, pharmaceuticals, and agricultural biotechnology. Vinbiocare, in particular, has emerged as a leader, with significant contributions to COVID-19 vaccine production and a strong focus on expanding biotech infrastructure.
• In 2024, Vinbiocare announced the successful completion of phase 3 clinical trials for its COVID-19 vaccine, marking a significant milestone in Vietnam's biotech industry. The vaccine, developed entirely in Vietnam, is set to be commercialized by mid-2024, making it one of the first domestically produced vaccines to reach this stage. This development underscores Vietnam's growing capabilities in vaccine production and positions the country as a key player in the global biotech landscape.
• Hanoi and Ho Chi Minh city are the dominant cities in Vietnam's biotech market, accounting for a significant share of the industry. Hanoi, as the capital, hosts major research institutions and government bodies that drive biotech policies and initiatives. Ho Chi Minh City, on the other hand, is a hub for biotech companies and startups, benefiting from a robust infrastructure and a dynamic business environment.

Vietnam Biotech Market Segmentation

• By Application: The Vietnam biotech market is segmented by application into healthcare biotechnology, agricultural biotechnology, and industrial biotechnology. In 2023, healthcare biotechnology holds the dominant market share, driven by the increasing demand for advanced medical solutions, such as gene therapy, vaccines, and personalized medicine. The prevalence of chronic diseases and the need for innovative treatments have made healthcare biotechnology a crucial segment.

• By Product Type: The market is segmented by product type into bio-pharmaceuticals, bio-agriculture, and bio-services. Bio-pharmaceuticals dominated the market share in 2023, owing to the rising demand for biologics, biosimilars, and vaccines. The bio-pharmaceutical segment's growth is propelled by Vietnam's increasing focus on healthcare infrastructure and the development of innovative drugs to address both local and global health challenges.

• By Region: The Vietnam biotech market is regionally segmented into North, South, East, and West. In 2023, the Northern region of Vietnam dominates the biotech market share, attributed to the presence of essential government bodies, well-established research institutions, and a high concentration of biotech firms. This dominance is bolstered by substantial government investments focused on advancing biotech research and infrastructure within the region. As a result, the North has become the epicenter of Vietnam's biotech activities, steering growth and innovation in the sector.

Vietnam Biotech Market Competitive Landscape

• Vinbiocare Expansion into Vaccine Production: In June 2024, Vinbiocare expanded its vaccine production facility in Hanoi, increasing its production capacity to 200 million doses annually. This expansion is part of a collaboration with Arcturus Therapeutics, which provides technology for the manufacturing of mRNA COVID-19 vaccines. The facility, located in the Hoa Lac Hi-tech Park, represents a significant investment of over $200 million and is designed to bolster Vietnam's capabilities in vaccine production
• Mekophar's Recent Development: In early 2024, Mekophar Chemical Pharmaceutical Joint Stock Company launched a new line of bio-agriculture products, including bio-pesticides and bio-fertilizers, targeting sustainable farming practices in Vietnam. This initiative aligns with the Vietnamese government's push for sustainable agriculture and positions Mekophar as a pioneer in the country's agricultural biotech sector. The new product line has been well-received by the market, contributing to Mekophar's revenue growth and expanding its footprint in the biotech industry.

Vietnam Biotech Market Growth Drivers

• Expansion of Healthcare Infrastructure: The Vietnamese government has significantly increased its healthcare expenditure, with an additional USD 1 billion allocated in 2024 specifically for enhancing the country's biotech capabilities. This investment focuses on expanding healthcare infrastructure, particularly in biotechnology-related areas such as gene therapy, vaccine production, and personalized medicine. The Ministry of Health reported that this funding has led to the establishment of new biotech research centers in Hanoi and Ho Chi Minh City.
• Rising Demand for Affordable Biologic Therapies: The demand for biologic therapies in Vietnam has surged, driven by the increasing prevalence of chronic diseases such as cancer and diabetes. In 2024, the market for biologic drugs, particularly biosimilars, reached USD 300 million, according to data from the Ministry of Health. This growth is largely due to the government's push to make healthcare more affordable and accessible.
• Strategic Partnerships with International Biotech Firms: Vietnam's biotech sector has seen a significant increase in international partnerships, with 2024 marking the entry of three major European biotech companies into the Vietnamese market. Vietnams biotech sector has gained significantly from collaborations with international biotech firms, enabling the transfer of advanced technologies and specialized expertise.

Vietnam Biotech Market Challenges

• Limited Skilled Workforce Despite the government's efforts to enhance biotech education, Vietnam continues to face a shortage of skilled professionals in the biotech sector. The Ministry of Education and Training reported that in 2024, Vietnam produced more than 2000 graduates with biotech-related degrees, far below the industry's demand. This shortage of skilled labor is a significant challenge, as it hampers the sector's ability to scale up operations and innovate.
• Dependence on Imported Biotech Equipment Vietnam's biotech industry remains heavily dependent on imported equipment and raw materials, with more than half of biotech machinery being imported as of 2024, according to the General Department of Customs. This reliance on imports makes the industry vulnerable to supply chain disruptions and fluctuating international trade policies.

Vietnam Biotech Market Government Initiatives

• National Biotechnology Development Strategy 2024-2030: In 2024, the Vietnamese government launched the National Biotechnology Development Strategy 2024-2030, with the aim of transforming Vietnam into a leading biotech hub in Southeast Asia. This strategy includes a comprehensive plan to enhance research and development capabilities, attract foreign investments, and promote the commercialization of biotech products.
• Vietnam Bio-Future Initiative 2024: The Vietnam Bio-Future Initiative, launched in 2024, is a government program aimed at promoting sustainable agricultural practices through biotechnology. The Ministry of Agriculture and Rural Development reported that this initiative has a budget of USD 100 million and aims to increase the adoption of biotech solutions in agriculture by 50% by 2025. This initiative is expected to play a crucial role in addressing food security and environmental challenges in Vietnam.

Vietnam Biotech Market Future Outlook

By 2028, Vietnam's biotech market will grow significantly, driven by advanced biopharmaceutical manufacturing, international partnerships, and government investments, positioning the country as a leader in personalized medicine and agricultural biotech.

Future Market Trends

• Expansion of Bio-Manufacturing Capabilities Vietnam's bio-manufacturing sector is projected to expand rapidly over the next five years, with the establishment of new production facilities and the adoption of advanced manufacturing technologies. The Ministry of Industry and Trade forecasts that by 2028, Vietnam will have doubled its bio-manufacturing capacity, driven by increased investments from both domestic and international players.
• Growth in Agricultural Biotechnology Agricultural biotechnology is expected to play a crucial role in Vietnam's economic development by 2028, with a focus on improving food security and promoting sustainable farming practices. The adoption of genetically modified crops and bio-agriculture products will lead to higher crop yields, reduced environmental impact, and increased export potential. This trend will position Vietnam as a leading producer of biotech crops in the region.